01Tobacco consumption pattern in India is unique

Legal cigarettes account for just 10% of overall tobacco consumed in India. The balance 90% of consumption is represented by traditional products like chewing tobacco, bidis, khaini etc. and illegal cigarettes.

This is unlike the rest of the world where tobacco is synonymous with cigarettes, representing 90% of tobacco consumption.

02Legal Cigarettes are subject to high & discriminatory taxation in India

As per data available up to 2016-17, cigarette taxes on a per kg basis of tobacco consumption are 55 times higher than the other tobacco products consumed in India.

Incidence of taxes on cigarettes after accounting for the GST Cess increase has trebled between 2012-13 and 2017-18.

03Tobacco is a very important commercial crop in India

India is the world’s 2nd largest producer and a major exporter of tobacco. With an estimated annual production of 800 million kgs., tobacco is an extremely important commercial crop in the country, providing livelihood to 45.7 million people.